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February 15, 1994
P.S. Protest No. 93-29
TIMEKEEPING SYSTEMS, INC.
Solicitation No. D5K-05-93
DIGEST Request for Protest against the terms of a solicitation
is denied where substitution of a product description for a specification would
not enhance competition, and protester has not met its burden of proof that
specification is unduly restrictive or that procurement is biased against it and
in favor of another. |
Decision
TimeKeeping Systems, Inc., (TKS) timely protests the terms of solicitation
102590-93-A-0135 for data collection devices and data transfer stations. The
solicitation, issued September 24, 1993, by the Procurement office at Postal
Service headquarters, sought initial and optional quantities of the two items
and optional extended warranties on the items for four years.
A ten-page "Statement of Work for Procurement of Collection Box
Scanners" (SOW) and a seventeen-page appendix entitled "Specification
for Hardware, Software Protocol, and Design Requirement for Data Collection
Devices utilizing Touch Memory" dated September 23, 1993, (Appendix A)
describe the data collection device[1]
in considerable detail. Paragraph 1 of the SOW provides a general description
of the device:
The collection devices shall be battery operated,
lightweight, durable and easy to use. The devices shall collect the required
data by reading a "Touch Memory" device. The "Touch Memory"
chip is a button-shaped, water-resistant, stainless steel encased memory chip
which will be installed inside the [mail] collection box, at a collection point,
or carried by postal personnel. The data recorded by the collection device
shall be transferred, through a data transfer station, to the U.S. Postal
Service's PC-based Decision Support Information System (DSIS) for data analysis
and report generation by a DSIS resident collection box scanner application
program.
The required Touch Memory devices, which were developed by Dallas
Semiconductor, are being purchased separately from this solicitation.[2] The SOW requires the data collection
device's firmware to meet the Touch Memory protocols set out in Appendix A, and
specifically, to "be compatible with Dallas Semiconductor's NEWPCSA,
RD_ROM, RD_RAM, RC_CLOCK, WR_RAM and WR_CLOCK software." SOW 3.2.
(The latter programs are sometimes referred to as Touch Memory utilities.)
The specification contains various standards for the device. The device
"shall weigh no more than 8 ounces." SOW 3.1.1.2. It
"shall be durable and be capable or withstanding . . . a minimum of
ten, four foot drops onto a concrete surface, in any orientation, and remain
operational." SOW 3.1.1.3. It "shall be capable of
operating in an environment with 0 to 100% humidity, condensing,"
and "shall meet the following temperature requirements: Operating
-20° to +125° F[;] Storage -40° to +140° F."
SOW 3.1.1.4.
TKS submitted several questions concerning the solicitation to the
contracting officer on October 12 to which the Postal Service replied on October
18. TKS wrote again on October 19, setting out a further list of questions.
TKS's initial questions and some of its second set of questions were also
answered in solicitation amendment A02 of October 25. TKS's protest followed.
The protest includes the following contentions:
- The use of a statement of work for this requirement is improper.
Procurement Manual (PM) 2.3.2 c.1. provides that "[w]henever
standard or modified commercial products will meet Postal Service requirements,
product descriptions must be used instead of specifications."
Commercially available collection devices will meet the Postal Service's needs,
and a product description should be used to obtain them.
- The statement of work is too restrictive. "The software
compatibility requirement of . . . 3.2 is so narrowly defined that only one
possible hardware design can meet it exactly. The software utility referred to
in S.O.W. 3.2 . . . are intended to read touch buttons. They are not intended
to communicate with a data collection device. Their use to evaluate
compatibility of data collecting devices is inappropriate and . . . excludes[s]
TKS and other offerors from this procurement. . . . The downloading method
required by the specification is slow and inefficient. . . . TKS believes that
Postal Service engineering intends to use the downloading protocol specification
to eliminate all offerors except one . . . ."
- The downloading method required by the specification is slow and
inefficient. TKS's downloading system is more efficient, and will save more
than the cost of the device over its useful life. TKS's method also allows
additional specified benefits.
- The hardware "recommendation" of section 2 of the specification
[3] is "so narrowly defined that
only the . . . configuration defined [there] can meet it." It is
inappropriate for section 3.1.7 B., Additional Features, of Appendix A to
suggest additional features which may be added to the basic features of the data
collection device firmware.
- Various elements of the solicitation are biased toward another offeror,
Systems Integrators, Inc., (SI) and against TKS. The Postal Service knew that
TKS's device exceeded the eight ounce weight limit; section 3.2's requirement
for compatibility with the Dallas Software utility programs was intended to
exclude TKS; and the requirement for a one-year warranty eliminates the
advantage of TKS's standard one-year warranty over SI's standard 90-day
warranty.[4]
- There has been a pattern of discrimination against TKS and in favor of SI.
Specifically, information furnished the Postal Service by TKS under a promise of
confidentiality was transmitted to a TKS customer/competitor by postal
engineers, damaging TKS's commercial relationship.[5]
TKS was discouraged from beta testing its product with the
Postal Service (except for two limited tests "already in process"
); TKS does not believe SI has been similarly limited. A previous
procurement of similar equipment (solicitation 102590-93-A-0134) was improperly
awarded to SI. TKS separately protested that award.[6]
- The answers provided to TKS's questions of October 12 are "vague
and evasive," except when they are "clearly to TKS's
disadvantage," showing the Postal Service's bias against TKS. TKS
specifically objects to the answer to its question concerning meeting the
temperature requirement,[7] contending
that "[t]he temperature requirements of the solicitation cannot
currently be met by any serious offeror."
- The solicitation fails to address adequately the issue of the durability of
the data collection devices. TKS's experience is that user abuse of the devices
is a serious problem. The Postal Service's durability requirements do not
reflect "real-world" conditions.
The protester requests appropriate revisions of the solicitation, removal
from the procurement of the individuals responsible for the bias against TKS,
review of the solicitation, the evaluation of offers and award of the contract
by individuals not involved in the creation of the specification and the
solicitation, and the continuing supervision of the award process by the General
Counsel.
The contracting officer's statement responds to the various contentions of
the protest.
- The use of a specification, rather than a product description, was intended
to provide uniformity and encourage competition. Touch Memory is fairly new,
and there is no standard industry protocol for it. The Postal Service's
research indicated that individual vendors' approaches incorporated their own
proprietary protocols for data storage. While different vendors' devices were
similar, they would not work with each other or with the USPS software
application. "This meant that once a vendor's device was selected,
the USPS would become dependent upon that vendor's proprietary protocol for this
program and any future procurements." To allow competition, the
Postal Service adopted Dallas Semiconductor's "public domain" Touch
Memory protocols, which were available to all vendors, and which all vendors
appeared to be able to incorporate into their products.
- The Postal Service believes that the software compatibility requirement of
the SOW is extremely relevant to its needs because it will allow the Postal
Service to develop its application software while allowing devices from
different manufacturers to be used. "[M]arket research has
identified at least three other vendors that can meet the requirements of the
SOW."[8]
- The Postal Service does not believe that TKS's downloading protocol offers
useful benefits given the limited amount of data intended to be downloaded in
each transaction. The additional features of its system which TKS has
identified would not be used in this application. The choices in this regard
are appropriately made by the contracting officer, and may be overturned only
for a clear abuse of discretion, citing Georgia Power Company, P.S.
Protest No. 90-01, February 14, 1990.
- The specification does not require the use of a specific configuration, and
various manufacturers have demonstrated their ability to meet it. The protester
has provided no authority for its contention that it is improper for a
specification to make reference to additional features.
- The specification was not designed around one vendor's products. Product
specification sheets from several vendors demonstrate their ability to provide
conforming products. That other vendors may not be able to meet them does not
render the requirement restrictive if it reflects the Postal Service's
legitimate needs. With respect to the protester's specific points, the
requirements for an eight-ounce weight and for software compatibility with the
Dallas Semiconductor protocol and utilities were established before TKS
demonstrated its device to the Postal Service and the Postal Service first
became aware of its features.[9] A one-year
warranty is common in postal procurements for items of this sort, and does not
materially harm TKS.
- There has been no pattern of discrimination against TKS. The discussions
with its customer/competitor occurred in the course of the Postal Service's
investigation of the market; while there have been some local purchases of
similar equipment, there has been no "beta product testing"
with any vendor. Because the Postal Service is developing its own
software, it sees no need to test TKS's software. The protest concerning the
earlier solicitation was properly dismissed as untimely, but none of its
allegations have merit, and it is not relevant to this procurement.
- The answers to TKS's questions were not intended to be vague or evasive,
but to clarify the issues raised. Some of TKS's questions were not answered
because they appeared to be program related and not relevant to the
solicitation. The Postal Service's temperature requirements are realistically
based on temperatures which can be expected to be encountered in use throughout
the fifty states and the limitations of the lithium battery power source. They
were not intended to be restrictive, and various vendors' product literature
demonstrates that they can be met.
- Durability is a criterion recognized by the solicitation; the ten four-foot
drop requirement is a minimum; a device's ability to withstand more will be
considered in the evaluation of offers. The selection and weighting of
evaluation criteria are within the contracting officer's discretion, citing Service
America Corp., P.S. Protest No. 91-56, October 30, 1991.
TKS and several interested parties supplied comments on the contracting
officer's statement as follows:
TKS:
- The data collection devices and transfer stations are clearly commercial
products which PM 2.3.2 c.1 requires be purchased by use of a product
description. The contention that a specification will enhance competition is
immaterial.
- The Postal Service need not become dependent on any one vendor's protocols
for future procurements. Applications which communicate with more than one type
of device are possible, and have been demonstrated in the related area in
connecton with the use of these devices for guard patrol.
- The Dallas Semiconductor protocol is hardware specific because it is
dependent on the use of a specific Dallas clock chip connected to the device's
touch port. Such a design cannot be a standard which multiple vendors can meet.
That other manufacturers can meet the software compatibility requirements of
the SOW by adopting the Dallas Semiconductor design does not justify the
exclusion of other designs.
- The contracting officer's assertion that TKS's downloading protocol will
provide no benefit to the Postal Service is inconsistent with the SOW's
requirement that the device have 64Kb of memory, enough for 5000 records. If
that amount of memory is not required, the specification should be revised.
- That a specification should not include recommendations or possibilities is
a "common sense concept," consistent with the derivation of the term "specification."
- While TKS does not contend that the eight-ounce weight requirement does not
reflect the Postal Service's legitimate needs, it fails to understand how the
figure was arrived at instead of some other figure.
- The Postal Service was aware of TKS's protocol as early as July 15, not
later. TKS was initially told that compatibility only with NEWPC was required;
the Postal Service added references to Touch Memory utilities to SOW 3.2 after
it learned of TKS's difficulties with them.
- The contracting officer's contention that a one-year warranty is consistent
with the Postal Service's requirements in similar procurements does not support
the restriction here.
- The prompt disclosure to TKS's customer/competitor of its plans to develop
its own data collection device, in the face of TKS's explicit request for
confidentiality, is evidence of bias or bad faith sufficient to meet the heavy
burden of proof needed to refute the presumption that contracting personnel have
acted in good faith.
- Contrary to the contracting officer's statement, at least some of the other
vendor's products have been evaluated in connection with this procurement,
although TKS's offers to provide units for evaluation have been declined. Once
the Postal Service indicated that it intended to use its own software, TKS no
longer asked that its software be considered.
- The points which TKS has raised with respect to procurement -0134 are
germane to this protest and should be considered in connection with TKS's
assertions of bias here.
- The answers to various of TKS's questions were, in fact, unclear or
incomplete, and several of TKS's questions relevant to elements of the
solicitation, such as the cost of technical support and whether the Postal
Service would be providing any maintenance on the units, were not answered.
- While various vendors have stated that their offered devices can meet the
solicitation's temperature requirements, they cannot guarantee that those
temperatures can be met because, to the best of TKS's knowledge, all the devices
incorporate a Dallas Semiconductor chip which the manufacturer does not
guarantee to function below -20° F. The Postal Service should not have
relied on the vendors' statements, but should have investigated the matter to
confirm the problem presented by the use of the noncompliant chip.
- The statement of work continues to understate the need for an adequately
durable device. TKS's experience with similar devices in testing applications
has shown the likelihood for abuse by users.[10]
Contrary to the contracting officer's assertions, TKS is raising
this issue not because its device is more durable than others, but because it
believes that the Postal Service does not understand the potential abuse to
which the units may be subjected.
System Integrators, Inc., an interested party:
- At the time the solicitation was released, SI's products were not
compatible with the Dallas Software protocol. The requirement for such
compatibility was not due to bias in favor of SI's product.
- SI, like TKS, was "discouraged" from field testing its product,
and discontinued pilot programs at the Postal Service's request.
- At least three other vendors in addition to SI can meet the eight-ounce
weight requirement, which does not bias the specification to SI.
- The postal personnel working on this project "have always acted
in a professional, fair, and unbiased manner." SI was not provided
with any information which would bias the procurement.
Brooklyn Computer Systems, Inc., (BCS) an interested party:
- While BCS has its own proprietary downloading software, it also supports
the Dallas Semiconductor communication specifications. Use of any one vendor's
proprietary downloading method would restrict competition far more than any of
the practices complained of in the protest.
- While Dallas Semiconductor has made its firmware available to firms
producing Touch Memory readers, its most recently revised versions were not
available in time for this solicitation, so BCS developed its own firmware to
meet the specification.
- BCS's device can meet the durability requirements of the solicitation; it
incorporates features to withstand abuse in low temperatures over time.
TEK Communications Services Incorporated, an interested party:
- The Postal Service specification is somewhat narrow, and implementing it
requires "that some of our superior design characteristics had to be
circumvented." In other situations, TEK supplies its devices with "device
drivers" written to communicate with specific items of hardware. Had the
Postal Service chosen this approach, it could have migrated more easily to
better follow-on hardware solutions.
- The solicitation "could possibly be construed" to
be biased to one offeror, but TEK hopes that is not the case; TEK has achieved
full compliance with the SOW.
- TEK's questions on the solicitation were answered objectively and
professionally.
- TEK assumes the Postal Service has correctly stated its durability
requirements; TEK's unit meets and exceeds them.
The contracting officer replied to the various comments as follows:
- A product description was not adequate to describe the Postal Service's
requirements, which include the reasonable restrictions imposed by the SOW.
While the vendors' commercial literature which the contracting officer has
offered demonstrates that the various products can meet the required weight,
shock, and temperature requirements, the literature does not address the
software protocols used by the commercial units.
- The protester's contentions concerning the use of individual protocols do
not take into account the impact of such an approach on a national program.
While the selection of a common technology did involve some level of dependency
on one supplier, its advantages outweighed those of other available
technologies.
- The Postal Service believes that compatible devices can be furnished
without the use of specific Dallas Semiconductor chips by the use of "emulation."
- The Touch Memory utilities were included in SOW 3.2 "to ensure
compatibility of the devices with the protocol and the application program"
because preliminary investigation indicated that some manufacturers were
revising those programs. Lack of standardization could impair the effectiveness
of the overall program.
- The Postal Service is not prepared to sacrifice competition and
compatibility for faster downloading scores; in this regard, the SOW's RAM
memory requirement has been based on available designs and possible future needs
and uses.
- The eight-ounce weight requirement was set prior to the July 15 meeting
with TKS; in any event, TKS's unit was not in production, and could have been
modified to meet the weight requirement. Similarly, the Postal Service did not
know the details of TKS's protocol, chip set, or design when it adopted the
requirement for Touch Memory utilities.
- The Postal Service did not have a "clear understanding"
of the relationship between TKS and its customer/competitor, and did not
intentionally disclose TKS's business information to it. The Postal Service's
actions are not evidence of malicious intent.
- The Postal Service believes that the technology of these devices is less
susceptible to damage and "certain levels of abuse" than
the devices to which TKS refers, and believes that instances of the sorts of
abuse TKS identifies are the exception, rather than the norm.
TKS held a telephonic protest conference with this office and submitted
post-conference comments which reiterated its previous comments and made the
following additional points:
- Bias toward SI is shown by an article in the January, 1994, Automatic
I.D. News which describes the involvement of a Jacksonville, FL, postal
official with representatives of SI in developing what the article describes as
"a reader wand designed for the Postal Service."[11] Bias is further shown by the difference
in treatment of SI and TKS with respect to tests (TKS was asked to conduct no
tests at all, while SI was asked to discontinue tests only after several had
been completed); by the fact that the Postal Service purchased devices from
vendors other than TKS, but declined to evaluate TKS's device; and by the fact
that the Postal Service developed its software using SI's device.
- The minimum durability requirement is inconsistent with the intended
minimum five-year useful life; it is unrealistic to expect the device to be
dropped only four times over five years.
- The Postal Service has not met its burden of demonstrating prima facie
support for its restrictive specification.
- The contracting officer's assertions justifying restrictions on the
downloading protocol are inconsistent with the practical alternative of device
drivers, as TEK has suggested, and overlook the advantages of allowing the use
of device drivers provided by individual vendors in connection with a common
software protocol.[12]
- The contracting officer's comments acknowledge that the Touch Memory
utilities are not used to communicate with the data collection device, but with
the Touch Memory device. TKS's device is compatible with the utilities only if a
minor change is made in their code, so that there is a 20 millisecond pause
before communication begins. TKS inquired about the suitability of such a
change in its October 12 questions. The October 18 reply to its question stated
that the data collection device "must be compatible with the
specified programs." The answer in Amendment A02 stated that the
offeror should describe, in its proposal, the deviation required, and that the
Postal Service would evaluate the deviation. TKS took these answers to mean
that incompatible devices would not be considered for award, and that the
decisions in that regard would be applied to TKS's disadvantage. The
contracting officer's comment confirms TKS's impression that the requirement is
unreasonable and intended only to exclude TKS.
DISCUSSION
TKS's protest raises a number of points which we have organized into the
following three issues:
A purchase description, rather than a specification, should
have been used for this solicitation.
The specification is too restrictive and fails to address the Postal
Service's actual needs.
The solicitation and the Postal Service's previous actions demonstrate its
bias against TKS and in favor of others.
We address these issues seriatim.
PM 2.3.1 distinguishes between specifications, statements of work, and
product descriptions.[13] PM 2.3.2
c.1. expresses a mandatory preference for the use of product descriptions over
specifications. The mandatory preference applies only when its predicate has
been satisfied; that is, when the Postal Service's requirements can be met by a
standard or modified commercial product. The contracting officer's position is
that the Postal Service's requirements cannot be met by existing standard
commercial products because those products incorporate proprietary firmware
protocols which will lock the Postal Service into those protocols for future
procurements. Future compatibility is a legitimate need which a contracting
agency may take into account in establishing its requirements, and mere
disagreement with in that regard is insufficient to overturn the agency's
determination.[14]
The contracting officer has necessarily established that the Postal
Service's needs could not be met by the use of a product description which
described commercial products with modifications.[15]
In this case, the contracting officer has identified four
brand-name products, other than the protester's product, which, according to
their descriptive literature, meet the weight, durability, and temperature
requirements of the solicitation; the units appear to require modification only
with respect to compatibility with the Dallas Software protocols. A product
description for the data collection device could be limited to those four
devices, or could incorporate as salient characteristics and required
modifications all of the provisions of the specification of which the protester
complains.[16] Thus, while it appears
likely that a product description could be written describing existing
brand-name items and the modifications to them which are required, we decline to
direct the use of such a description because it appears unlikely that its use
would enhance competition.
The protester also contends that the specification is too restrictive.
Where a protester alleges that a solicitation is unduly
restrictive, it is incumbent upon the procuring agency to establish prima
facie support for its contention that the restrictions it imposes are
reasonably related to its needs. But once the agency establishes this support,
the burden is then on the protester to show that the requirements complained of
are clearly unreasonable.
Once the Postal Service establishes prima facie support for
the allegedly restrictive requirements, the protester must present an extremely
high level of proof to show that those restrictions are clearly unreasonable.
The determination of what constitutes the Postal Service's minimum
needs is properly to be made by the requiring activity, and is not subject to
being overturned in the absence of a clear showing that the determination lacks
a reasonable basis. If a specification is otherwise reasonable, the fact that
one or more potential offerors may be precluded from participating in the
solicitation does not render its terms restrictive if they reflect the
legitimate needs of the procuring activity.
This office will not substitute its judgment for that of the
technical personnel absent "fraud, prejudice, or arbitrary and capricious
action."
Memorex Telex Corporation, P.S. Protest No. 92-73, January 8, 1993.
(Citations and internal quotations omitted.)
TKS complains that the specification establishes an excessively rigorous
software compatibility requirement, employs an inefficient downloading protocol,
and imposes restrictive hardware, weight, and temperature requirements. On the
other hand, it complains that the requirements for device durability are not
sufficiently stringent. The contracting officer has offered justifications for
each of the requirements which are sufficient to establish prima facie
support for them. The protester's further comments have been insufficient to
establish that the requirements are clearly unreasonable.
[17]
The protester's final issue, its allegations of bias against it and in favor
of another vendor is measured, as the protester recognizes, by an extremely high
burden of proof. A recent decision of this office, A-1 Transmission,
P.S. Protest No. 93-14, October 29, 1993, quoted the discussion of the burden by
the Court of Federal Claims, as follows:
In the absence of clear evidence to the contrary,
however, it must be presumed that the government acted in good faith . . . .
Since good faith is presumed, the plaintiff bears an extremely heavy burden of
proving the contrary, and the government is prevented only from engaging in
actions motivated by a specific intent to harm the plaintiff. The difficult
burden of proof for a plaintiff attempting to show 'government bad faith' has
been outlined as follows:
[i]t requires 'well-nigh irrefragable proof' to induce
the court to abandon the presumption of good faith dealing. In the cases where
the court has considered allegations of bad faith, the necessary 'irrefragable
proof' has been equated with evidence of some specific intent to injure the
plaintiff. Thus, in Gadsden v. United States, 78 F.Supp. 126, 127,
111 Ct.Cl. 487, 489-90 (1948), the court compared bad faith to actions which are
'motivated alone by malice.'. . . Similarly, the court in Struck Constr.
Co. v. United States, 96 Ct.Cl. 186, 222 (1942) found bad faith when
confronted by a course of Governmental conduct which was 'designedly
oppressive.'
A-Transport Northwest Co., Inc., 27 Fed.Cl. 206, 220
(November 25, 1992), quoting Kalvar Corp. v. United States, 211 Ct.Cl.
192, 198-99, 543 F.2d 1298, 1301-02 (1976), cert. denied, 434 U.S. 830
(1977) (some citations omitted; emphasis in original).
The same standard applies where the contention is that the agency favored
one source to the exclusion of all others. Honeywell Information Systems,
Inc.--Reconsideration, Comp. Gen Dec. B-193177.2, 81-1 CPD ¶ 26,
January 19, 1981.
Here, none of the evidence on which TKS relies irrefragably, that is, in a
manner which is impossible to deny or refute, demonstrates bias against TKS or
in favor of any other vendor.[18]
The protest is denied.
William J. Jones Senior Counsel Contract Protests and Policies
Footnotes
[1]Except where the context clearly
reflects otherwise (e.g., when reference is made to "the
Touch Memory device"), the term "device" refers to the
data collection device throughout this decision.
[2]"Touch Memory" is a
trademark of Dallas Semiconductor.
[3]Reference to section 2.0 of
Appendix A, which includes an illustration of a typical data collection device,
is apparently intended. As the solicitation was amended by Amendment A02, the
hardware specifications of the appendix are "given only as a sample
to demonstrate hardware functionality." See footnote 7,
infra.
[4]TKS also complained that the
specification used the term "cradle" to describe the data transfer
station, contending that only SI so used the term. This contention was
subsequently dropped.
[5]The record reflects that TKS had
been marketing a third party's data collection device, but decided to develop
its own device, which it discussed with the Postal Service's Engineering
Research and Development (ERD) personnel, under an oral request for
confidentiality. Despite that request, ERD personnel subsequently discussed
TKS's device with the third party, prematurely disclosing TKS's plans to its
potential competitor.
[6]Solicitation -134 sought the
purchase of 543 data collection devices and 196 data transfer stations for use
in the New York City area. Although the requirement had been the subject of a
request for a noncompetitive purchase from Systems Integrators, Purchasing
decided to acquire the requirement competitively using simplified purchasing (PM
4.2), which generally is available for purchases of $100,000 or less, although
it may be used for appropriate larger purchases with higher level approval.
Under simplified purchasing, "quotations must be solicited from a
sufficient number of qualified sources (normally at least three) to ensure that
the price is fair and reasonable." PM 4.2.1 d.2.
A written request for quotations (RFQ) was issued August 11, to TKS, SI, and
TEK Communications Services (TEK). Quotations were due August 16. Delivery was
sought within sixty days after contract award. The three firms submitted
quotations, which were the subject of telephonic discussions which incuded
requests for best and final offers. TEK quoted the lowest price, but was not
considered for award because "the software to make [its] system
operational for use on Postal Service collection boxes was not fully functional
at the time [quotations] were solicited." SI's $240,00 price was
approximately $4,600 lower than TKS's. A purchase order was issued to SI on
August 26.
TKS's protest, P.S. Protest No. 93-28, concerning the award to SI raised
several objections to the process, including the initial attempt to solicit the
requirement noncompetitively, the failure to advise offerors that the simplified
purchasing process was being used, the use of simplified purchasing for a
purchase in excess of the $100,000 threshold, the failure to notify TKS in the
contracting officer's telephone call that it was within the competitive range or
that the telephone call constituted discussions, the failure in the course of
discussions to afford TKS or TEK an opportunity to revise their proposals or to
request best and final offers, and the consideration of additional items offered
by SI in considering it for award while not considering additional benefits
offered by TKS. TKS asserts that TEK was never considered seriously for the
requirement, and was included only to meet the requirement to solicit three
sources. TKS assumes that SI's initial offer was higher than TKS's, and that
only SI was offered the opportunity to revise its price.
Protest 93-28 was summarily dismissed (PM 4.5.7 p.) on November 5 because it
was received more than fifteen working days after the award of the contract
which it challenged. PM 4.5.4 d. In response to TKS's subsequent inquiry
whether the issues raised by the protest would be incorporated into this
protest, TKS was advised that "the contentions made in protest 93-28
and the contracting officer's rebuttal will be a part of the record in protest
93-29 in connection with the contention in protest 93-29 that there has been 'a
pattern of favoritism' with regard to solicitations [-0134 and -0135]."
[7]The question and answer appear in
Amendment A02 as follows:
31. Question. A number of the Dallas chips indicated
in the specification are not currently available in industrial temperature
range. This causes a conflict with the temperature range required by the SOW
Sec. 3.1.1.14. It is not possible to perform the testing required, or guarantee
the specified temperature range without industrial temperature parts. Also,
Dallas has indicated to us that these parts may not be available in time to meet
the delivery schedule (depending, of course, on the actual date of contract
award). How will the solicitation be modified to reflect this?
Answer. Appendix A is modified as follows:
Change appendix A, Sec. 1.2, Variations to Specification, as follows:
"1.2Variations to specification - All software protocols must be
strictly adhered to. The hardware specifications (i.e., chip sets,
integrated circuits) are given only as a sample to demonstrate hardware
functionality. Note: All integrated circuit chips referenced are Dallas
Semiconductor part numbers. The use of these specific 'chips' in the data
collection device is not a requirement."
[8]Attached to the contracting
officer's statement is descriptive literature from four vendors (including SI)
which describes data collection devices which are said to meet the SOW's
requirements as to weight, durability, and temperature range.
[9]The contracting officer's
statement identifies that as occurring on August 23. Her subsequent comments,
discussed below, correct that date to July 15.
[10]As the contracting officer's
response makes clear, TKS's comments in this regard relate to devices using a
bar code scanning technology, not the Touch Memory technology involved in this
solicitation.
[11]The article also describes the
Postal Service's adoption of the Dallas Semiconductor Touch Memory devices, and
asserts that twenty-five cities "bought the system before it came to
the attention of USPS headquarters."
[12]TKS likens the situation to the
one in which various printer drivers may be used in connection with a personal
computer.
[13]Specifications "describe
the technical requirements of an end product . . . usually includ[ing]
qualitative and quantitative design and performance requirements";
statements of work "describe the work to be performed, rather than
the end product" although they may include specifications; and
product descriptions include "a common generic description of the
item" which is "not as qualitative or quantitative as a
specification, and usually describe the end product in terms of performance or
standard commercial name . . . ."
The "Statement of Work for Procurement of Collection Box Scanners"
in the solicitation clearly is a specification, rather than a statement of work,
despite its title, since it describes the end products which the solicitation
seeks, rather than describing the work to be done in the course of the contract.
While we find no impediment, per se, to the inclusion of suggested
additions or enhancements in a specification, we have noted the futility of such
inclusions in cases in which such enhancements will not be evaluated. Action
Enterprises, Inc., and American Vending, Inc., P.S. Protest Nos. 87-14,
87-15, March 13, 1987.
[14]The identification of an
alternate approach to meet the need for compatibility (i.e., the
provision of multiple suitable device drivers) is insufficient to establish
unreasonableness. The proliferation of multiple drivers necessary to conform
individual vendors' products to the Postal Service standard could present a
separate burden which the Postal Service might well wish to avoid.
[15]A product description provides a
generic identification of the item, known acceptable brand-name products, their
manufacturers or distributors, and a description of any modifications required
to the brand-name items. PM 2.3.2 c.2. When there are fewer than three
acceptable brand-name products, the product description must identify the
brand-name items' "essential characteristics" and allow
the substitution of equal items meeting those characteristics. PM 2.3.2 c.4.
However, when there are at least three acceptable brand-name products, "the
solicitation may provide that only proposals for those products will be
considered." PM 2.3.2 c.3.
[16]The reasonableness of those
requirements is addressed infra.
[17]The contracting officer asserts,
and we must accept, that the hardware "recommendation" may be met by
other chips by emulation. TKS has stated it does not contest the legitimacy of
the eight-ounce requirement, instead challenging how that figure was arrived at.
The temperature requirements do not appear inconsistent with the temperatures
in which the devices might be used or stored. The protester's contention that a
more durable device is necessary improperly invades an area of the contracting
officer's discretion.
[18]Specifically, the contracting
officer has established that the specification requirements to which TKS objects
were established prior to, and without knowledge of, the capabilities of TKS's
prototype device; the establishment of a one-year warranty does not adversely
impact TKS; such differences in treatment as may have occurred with respect to
the testing of SI's and TKS's devices appear consistent with factors other than
favoritism (for example, SI's device was available prior to TKS's); and the
answers to TKS's questions appear to be a reasonable effort to respond to its
concerns even if they are not fully satisfactory to TKS. The most troubling
point which the protester raises in this regard, the disclosure of confidential
information to its business customer and competitor, while regrettable, appears
to be an unfortunate misunderstanding rather than a deliberate effort to injure
TKS.
The Postal Service's conduct with respect to solicitation -0134 does not
bolster the protester's contentions. The conversion of a proposed
noncompetitive procurement to a competitive one does not show favoritism to the
original source; TKS's complaints about the manner in which the discussions
which followed its offer are rebutted by the contracting officer's
contemporaneous notes (which state, for example, that TKS was given the
opportunity to revise its price, but declined); and the award to SI on the basis
of its lower price was consistent with the simplified purchasing process which
was used.
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